EMC has not taken its corporate fall-out with Hewlett-Packard well.
HP ended its exclusive agreement to resell EMC's storage equipment earlier this month (PC Week ,11 May), in favour of a new deal with EMC's rival, Hitachi. Before the estrangement, HP had accounted for almost 20% of EMC's revenue.
A bitter EMC has now given resellers it shares with HP/Hitachi an ultimatum to choose between them.
David Scott, marketing manager of HP's enterprise storage business unit, told PC Week that no resellers had as yet deserted HP for EMC.
HP turned to Hitachi in the first place because it was prepared to allow HP to modify Hitachi products, while EMC refused to let HP touch its products, Scott said.
The HP product MC256 has added micro-code to the Hitachi product to change it to 32 ports rather than 16, for example.
As revealed in PC Week on 11 May, HP has also cut down on the amount of product it resells from Data General's Clariion division. HP now sells more of its own AutoRaid and JBOD (just a bunch of disks) product lines.
But unlike EMC, Clariion has taken the news well and has picked up business elsewhere through its own sales channels, including Dell.
HP, like Sun before it, has realised that with trends such as SANs and Ecommerce, storage now accounts for a much higher proportion of average hardware sales than it once did, Scott said.
There is profit to be made in selling not only to your own customer base but to rivals as well, he said.
HP GOES DIRECT
Hewlett-Packard has formed a wholly owned subsidiary, HPdirect, out of its direct-sales consumer business. It will handle Internet and other direct sales of HP products.
HP also said it plans to expand direct sales of such products in Europe.
It will launch the effort through its Web site in the UK in June and in Sweden during the third quarter, with expansions elsewhere in Europe in 2000.
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